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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
HOUSING & COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: AUGUST 13, 2024
FROM: HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: INTRODUCTION OF AN ORDINANCE ESTABLISHING THE
ANAHEIM LOCAL HOUSING TRUST FUND
ATTACHMENT (Y/N): YES ITEM # 20
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, introduce an ordinance, establishing the Anaheim Local Housing Trust Fund for the purposes of advancing efforts to preserve and expand affordable housing development and programs in the City.
DISCUSSION:
On April 2, 2024, Housing and Community Development staff presented background information on the continuing need for funding and policies to address affordable housing needs in Anaheim. The presentation included information on local needs and strategies that are used in other similarly situated jurisdictions. The City Council directed staff to advance strategies to increase funding for future programming in the form of an Anaheim Local Housing Trust Fund (A-LHTF).
Based on City Council feedback and further research, staff recommends the use of a public model for the A-LHTF. This structure provides the ability for the City Council to serve as an oversight body, ensuring that no funds are expended without prior approval.
It is further recommended that the Director of Housing and Community Development, or designee, serve as the administrator of the A-LHTF. The Director’s administrative responsibilities will be developed and included in the A-LHTF operating guidelines to be presented for approval at a later date.
Activities of the Housing Trust
While a primary function of many LHTFs is to provide gap financing for the development of new affordable housing units, City Council will have the opportunity to direct staff on the priorities deemed appropriate for Anaheim, based on the source of funds received.
As already prioritized by City Council, programs considered for the A-LHTF may include activities such as eviction prevention assistance, downpayment assistance to Introduction of an Ordinance Establishing the Anaheim Local Housing Trust Fund August 13, 2024
homebuyers, neighborhood revitalization, and programs that promote the creation of affordable housing, including loans for predevelopment activities and gap financing.
Once the A-LHTF is established, staff will return to City Council with proposed operating guidelines, a five-year plan that sets out program priorities as well as a budget request to access funds in the A-LHTF.
Funding Sources
State and Federal Funds
The City is the recipient of State and Federal funds for housing programs and, as the Housing Successor Agency, has remaining housing set-aside funds from the former Anaheim Redevelopment Agency. Given the strict parameters imposed on the use of these funds, staff recommends maintaining them separately, that is, are not consolidated within the A-LHTF except in cases where these funds may serve as matching funds for other sources of funding for the LHTF. Voluntary Developer Contributions
On August 14, 2018, the City Council adopted, by Resolution, an Affordable Housing Policy Statement which declares that addressing the City’s affordable housing needs is a priority. This action also established a voluntary, incentive- based approach to promote and facilitate affordable housing development.
Voluntary funds collected in response to this policy would be deposited into the A-LHTF.
DisneylandForward
On May 7, 2024, the City Council unanimously approved DisneylandForward, a $1.9 billion, 10-year expansion plan for the Disneyland Resort. As part of the DisneylandForward Development Agreement (DA), Disney committed to a $30 million contribution to affordable housing in Anaheim. The pledged amount will be provided in two tranches with the first $15 million expected in the first year of the DA and the second deposit due in five years. During public discussions about this contribution, it was anticipated that these funds would be deposited in a new A-LHTF.
Grant Opportunities
On June 26, 2024, Anaheim was one of only 21 jurisdictions selected for the U.S.
Department of Housing and Urban Development Pathways to Removing Obstacles to Housing (PRO Housing) program and awarded $3,497,200. The Anaheim application included a request to provide seed funding for a LHTF in the amount of $1 million. In the future, a potential source of funds for the A- LHTF is the State of California’s Local Housing Trust Fund program. In 2023, the minimum grant amount for a new LHTF was $500,000 and the maximum amount was $5 million.
Introduction of an Ordinance Establishing the Anaheim Local Housing Trust Fund August 13, 2024
Future Potential Funding Sources
o A potential source of funding is identified in the draft 2021- 2029 Housing Element, Section 4 entitled Housing Policy Program . As outlined in the proposed policy, the City may consider the establishment of an Affordable Housing Development Fee to support an Affordable Housing Trust Fund and Production Program.
o The City has been successful in securing unique, one-time funds in the form of congressional earmarks and grants from partners such as CalOptima and will continue to look for strategic one-time funding opportunities.
o Staff also continues to explore other long-term funding policies and sources including community partnerships and governmental programs.
This project is in line with the City’s Strategic Plan Goal B Enhance Livability, Strategy 2 - Develop strategies to stabilize and expand affordable, workforce, and home ownership housing options for low-income residents.
IMPACT ON BUDGET:
The introduction of an ordinance establishing an Anaheim-specific Local Housing Trust Fund does not have any budget impact on its own merit as no City funds have been pledged at this time. However, potential city-generated contributions to the fund in the future may impact City resources and, as such, shall be subject to City Council approval.
Respectfully submitted,
Grace Ruiz-Stepter
Housing and Community Development Director
Attachment:
1. Ordinance